International Islamic University, Islamabad

Faculty of Management Sciences

Islamic Law of Business

Lecture 2

Dr. Asad Ullah

PhD Islamic Law & Jurisprudence
Lecturer, Faculty of Shariah & Law, IIUI
 Layout of Presentation
General Principles of Business in Quran & Sunnah
4. Prohibition of Qimar (Gambling)
5. Prohibition of Fraud and Deception
6. Conformity of the contract with Maqasid al-
Shariah (Objectives of Shariah
7. Principle of Liability for Loss and Entitlement to
Profit
 4. Prohibition of Qimar (Gambling)
Qimar includes every form of money, the acquisition of
which depends purely on luck and chance.
As opposed to others equally eligible, one may acquire
income as a result of lottery or lucky draws.
It also includes any receipt of money that is at the cost
of other party having equal entitlement to that money.
 4. Prohibition of Qimar (Gambling)
The Quran has explicitly prohibited this practice by
saying;
" ِ‫يَا أَيُّهَا الَّذِي َن آمَنُوا إ َِّنمَا الْ َخمْرُ وَا ْلمَيْسِرُ وَا ْلأَ ْنصَابُ وَا ْل َأزْلَامُ رِجْسٌ مِنْ عَمَلِ الشَّيْطَان‬
.)90 :‫فَاجْتَنِبُوهُ َلعَلَّكُمْ تُ ْفلِحُونَ " (املائدة‬
O you who believe, intoxication and gambling,
dedication of stones and divination by arrows are an
abomination of Satan’s handiwork. Eschew such
abomination, that you may prosper.
 5. Prohibition of Fraud and Deception
The Quran and Sunnah disapprove the fraud, cheating
and deception in whatever form they might be.
Fraud refers to maneuver practiced by one of the parties
to induce s person to a contract without which he would
have not entered it.
It also refers to concealing the defects of and
adulteration in merchandise.
 5. Prohibition of Fraud and Deception
Fraud includes a number of practices such as;
a. Giving short measure and short weight.
b. False bidding to raise price of an item.
c. Leaving an animal for a long time to give
false impression about its milk yield.
The Prophet (SAW) said: “He who deceives is not one of
us”.
 6. Conformity of the contract with Maqasid al-
Shariah (Objectives of Shariah)
All the injunctions of the shariah are directed towards
the realization of five objectives knows as Maqasid al
Shariah. These are;
1- Preservation of Din (Religion).
2- Preservation of Nafs (Life).
3- Preservation of Nasl (Progeny).
4- Preservation of Aql (Intellect).
5- Preservation of Mal (Property).
 6. Conformity of the contract with Maqasid al-
Shariah (Objectives of Shariah)
The objectives of shariah have been emphasized in a
large number of texts of Quran and Sunnah.
The requirement of the conformity of the contract with
the objectives of Shariah is similar to the requirement of
modern law that an agreement should not be against
public policy.
 7. Principle of Liability for Loss and Entitlement to
Profit
This principle has been taken from the text of the Hadith
which says:
“Usufruct devolves with liability”.
This principle provides that a person is entitled to profit
only when he bears the risk of loss.
A businessman is entitled to profit and gains in his
business because he is ready to bear loss.
 7. Principle of Liability for Loss and Entitlement to
Profit
The landlord of a house in entitled to the rent of his
house because he bears the risk of destruction and
damage of the property.
On the other hand, any excess above the principal sum
paid to the creditor by the debtor is prohibited, because
the creditor does not bear any risk with regard to the
amount lent.
Thank You